Malta To Tokenize Securities On Blockchain

Another real-world application of blockchain technology.

Malta has stolen some of the thunder surrounding blockchain technologies by declaring its goal to “tokenize traditional financial assets.”

MSX, the innovation vehicle of the Malta Stock Exchange, announced a partnership with Neufund, a Germany-based blockchain protocol for securities tokenization and issuance, and Binance, the world’s largest cryptocurrency exchange by trading volume.

The three organizations aim to create the first end-to-end primary issuance platform for securities tokens, or equity tokens. That should pave the way for secondary trading of these assets, providing companies around the world with an alternative means of raising capital via blockchain.

The announcement confirmed Malta’s progress in the blockchain and crypto spheres, said Silvio Schembri, Malta’s parliamentary secretary for Financial Services, Digital Economy and Innovation.

Projects for the equity token market indicate that the total market cap for cryptocurrencies could exceed $1 trillion by 2020.